Trump Signs Executive Order Targeting European Drug Price-Fixing

President Donald Trump signed an executive order aimed at reducing prescription drug prices in the U.S. by implementing a Most Favored Nation pricing policy, which bases U.S. drug prices on the lowest prices paid by other developed countries. Health and Human Services Secretary Robert F. Kennedy Jr. highlighted that European nations' price-fixing practices have led Americans to disproportionately bear pharmaceutical costs, as the U.S. accounts for just over 4% of the global population but nearly 75% of pharma revenue. The order directs agencies to ensure foreign countries pay their fair share in pharmaceutical research and development and enables direct-to-consumer drug purchases at Most Favored Nation prices, bypassing intermediaries. Dr. Mehmet Oz, CMS administrator, praised the order as a powerful step toward fairness, emphasizing its potential to reduce financial strain on Americans and improve medication adherence. Trump emphasized fairness in pricing, stating the U.S. will no longer subsidize other countries' healthcare costs, similar to his approach with NATO defense spending. The administration plans to enforce the order through regulatory action if pharmaceutical companies do not comply with the new pricing targets.